Globe anticipates significant rise in non-telco revenues over the next two to three years, aligned with its strategic shift from a traditional telco to a techco with a menu of digital solutions on offer.
Ernest Cu, Globe Group President and CEO, said he sees its non-telco business contributing to total revenues in various ways.
“The non-telco earnings will grow. They could either be consolidated into our P and L (Profit and Loss Statement) or they could be in a sharing equity earnings of a subsidiary if we become a significant minority investor. The other way that it brings value to Globe is it adds to our overall market cap and market value as we create companies that may not be as profitable yet but do create significant value in terms of market valuation that will also show in the stock price of Globe,” he explained.
Cu remains optimistic about the growth, noting that Globe excels at identifying significant, longstanding challenges in the country which can be solved at scale, a press release from Globe said Monday, September 11.
Globe’s transformation from telco to techco has led the organization to diversify its portfolio, venturing into various sectors such as fintech, health tech, edutech, climate tech, adtech, shared services, investments and entertainment, it said.
This diversification strategy has proven fruitful. As of the first half of the year, Globe’s non-telco revenues skyrocketed to P2.8 billion, up from P1.9 billion during the same period in 2022. This impressive 52 percent year-on-year growth means non-telco revenues now represent 3.5 percent of the company’s total gross service revenues.
This surge in non-telco revenues is attributed to the growth across Globe subsidiaries led by ECPay and Asticom, and closely followed by AdSpark and Yondu.
Additionally, Globe’s joint ventures and affiliates have also been instrumental in boosting the bottom line. The company’s net share in equity gains grew by 13 percent year on year to P1.1 billion. A standout in this growth trajectory is Globe’s share in Mynt, which saw a 63 percent year-on-year increase, reaching close to P1 billion in the first half of the year. Mynt’s positive contribution now accounts for 5.1 percent of the Globe Group’s income before tax.
With an enviable ecosystem comprising a vast customer base, powerful brands, strategic affiliations, and partners, Globe envisions its non-telco revenues playing an even more significant role in its total earnings in the near future. The company is also doubling down on its efforts to explore new opportunities and partnerships, aiming to strategically expand its revenue streams.*PR